Missing Mortgage Payments?
It’s not too late to take positive action.
Are you wondering what a homeowner should expect when payments are missed? The most important thing to know is no matter what stage of default a homeowner is in, there are many ways to avoid foreclosure. That said, the quicker a homeowner takes action, the greater their chance of resolving the situation.
First, know what to expect. While timelines vary according to lender policies, this is typical of what happens when payments are missed:
- 30 Days Late: The lender will attempt phone contact or send a notice in the mail.
- 60 Days Late: The lender will attempt to make contact by phone and follow up with another letter in the mail.
- 90 Days Late: The lender will send a letter demanding all past due amounts within 30 days and start the foreclosure process.
- 120 Days Late – or More: The lender’s attorneys will take over and the homeowner will be responsible for their fees in addition to missed mortgage payments and the loan amount due.
Not late yet, but about to be?
Homeowners who are not late, but foresee missing payments should communicate this to their lenders as soon as possible. In the past, many banks wouldn’t work with homeowners unless they were one or more payments behind. In light of the mortgage crisis, most lenders would rather take a proactive stance and decrease their loan losses. They are more willing than ever to work with homeowners to avoid being late in the first place.
We’ve created a website with a wealth of resources on foreclosure options. Visit www.ForeclosureOptionsToday.com and find answers to many of your questions. This month’s special report shows you how to Stop the Stress: 5 Important First Steps to getting back on track.
Sara & Daryl, Your Home Team, 858-876-5643